I think we have to look at state currencies in countries where the state 
actually distributes the majority of the social product as things that are 
intermediate between the sort of Money that Marx analysed in Capital and the 
simple labour account system he refers to in the critique of the Gotha 
Programme of the German Workers Party.

Recall what he said about the credit system:
Conceptions which have some meaning on a less developed stage of capitalist
production, become quite meaningless here. Success and failure both lead here 
to a centralisation of
capital, and thus to expropriation on the most enormous scale. Expropriation 
extends here from the direct
producers to the smaller and the medium-sized capitalists themselves. It is the 
point of departure for the
capitalist mode of production; its accomplishment is the goal of this 
production. In the last instance, it
aims at the expropriation of the means of production from all individuals. With 
the development of social
production the means of production cease to be means of private production and 
products of private
production, and can thereafter be only means of production in the hands of 
associated producers, i.e., the
latter's social property, much as they are their social products. However, this 
expropriation appears
within the capitalist system in a contradictory form, as appropriation of 
social property by a few; and
credit lends the latter more and more the aspect of pure adventurers. Since 
property here exists in the
form of stock, its movement and transfer become purely a result of gambling on 
the stock exchange,
where the little fish are swallowed by the sharks and the lambs by the 
stock-exchange wolves, There is
antagonism against the old form in the stock companies, in which social means 
of production appear as
private property; but the conversion to the form of stock still remains 
ensnared in the trammels of
capitalism; hence, instead of overcoming the antithesis between the character 
of wealth as social and as
private wealth, the stock companies merely develop it in a new form.
The co-operative factories of the labourers themselves represent within the old 
form the first sprouts of
the new, although they naturally reproduce, and must reproduce, everywhere in 
their actual organisation
all the shortcomings of the prevailing system. But the antithesis between 
capital and labour is overcome
within them, if at first only by way of making the associated labourers into 
their own capitalist, i.e., by
enabling them to use the means of production for the employment of their own 
labour. They show how a
new mode of production naturally grows out of an old one, when the development 
of the material forces
of production and of the corresponding forms of social production have reached 
a particular stage.
Without the factory system arising out of the capitalist mode of production 
there could have been no
co-operative factories. Nor could these have developed without the credit 
system arising out of the same
mode of production. The credit system is not only the principal basis for the 
gradual transformation of
capitalist private enterprises. into capitalist stock companies, but equally 
offers the means for the gradual
extension of co-operative enterprises on a more or less national scale. The 
capitalist stock companies, as
much as the co-operative factories, should be considered as transitional forms 
from the capitalist mode of
production to the associated one, with the only distinction that the antagonism 
is resolved negatively in
the one and positively in the other.Capital, Vol.3, Chapter 27
http://www.marxists.org/archive/marx/works/1894-c3/ch27.htm (3 of 6) 
[23/08/2000 16:02:58]


The SEK is an instance of a new set of social relations arising initially with 
the form of the old, but they are not yet in the position to cast off the old 
form completely. Although the Swedish state is the primary distribution 
mechanism for the social product, it exists in symbiosis with the capitalist 
economy which requires a transferable unit of command over labour. The question 
I am interested in is how this regulation of transitional money forms works, 
and how it is
different from the Euro.
In the case of the Euro two key factors are missing:
1. The states that administer social welfare and raise taxes do not have the 
right to issue money.
2. The organisation which nominally controls the issue of money - the EU, has 
negigible tax rasing power and distributes only a minor part of the social 
product

I think one can see the institution of the EU as a reaction by the rentier 
class against the tendancy of state money to displace the monopoly control over 
social labour exerted by Capital. By attempting to move the creation of the 
monetary unit away from the taxing state and into an autonomous bank, they are 
attempting to regress to the sort of money that existed under the gold 
standard. But this sort of money is incompatible with the social relations that 
have grown up in Europe over the last 75 years or so.

________________________________________
From: [email protected] [[email protected]] On 
Behalf Of Jim Devine [[email protected]]
Sent: Thursday, August 09, 2012 8:31 PM
To: Progressive Economics
Subject: Re: [Pen-l] FW: Determinaton of the value of state token money

On Tuesday, Paul wrote:
> ... What I take [Marx] to be saying here [in the famous 1868 letter to 
> Kugelman] is that the 'law of value' is the law of the proportionate 
> distribution of social labour, that this is a natural law which can not be 
> done away with. Only the form of its appearance can change.<

this suggests that there are _two_ meanings for the phrase "law of
value": one refers to "the state of society where the interconnection
of social labor is manifested in the private exchange of the
individual products of labor" (Marx, describing commodity production)
and the other to human society _in general_. I don't find it
worthwhile to argue about the meaning of words, so I won't do so.

But I do have a question: if we're using a "law of value" to describe
a system that does not produce commodities, how can the value of money
be relevant at all? is it simply formal money of account (used in
accounting)?
--
Jim Devine / If you're going to support the lesser of two evils, you
should at least know the nature of that evil.
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